how's that for an encore? with xerox, you're ready for real business. >> good to see you jim. thank you for coming in. we will see jim on may 9, a great cause to benefit pediatric cancer cancer. >> they are making a bullish call. buy, buy, buy, as mr. cramer said, too. is it enough to quiet .

>> goldman sachs making a bullish call. when that firm speaks, wall street seems to listen. another line says the risks we emphasize next month and weaker u.s. data leaving less uncertainty coming forward. you have been saying all along that equities are the place to be. to me goldman may be a little

late on that. >> we have been looking at this over a period of time. the second half of the year we were going to be at a bester place. so you know what makes perfect sense that goldman is joining that party and coming out with the buy, buy, buy. let's just make sure it's not a good-bye house and good-bye house. >> that kind of bye bye bye. >> they're going to need it for their earnings. honestly, we are not rebounding today because of any rebounding global books. the central bankss a are all active. >> it's not an expansion of global growth going on. this market.

>> thanks so much. just ended a little while ago was about an hour long discussion in which paulson hit on two interesting themes. a deal that paulson supported. he says to stay tuned to that space. he expected to see more activity in it. and on the gold side they are sticking to their thesis in doing two things. and taking a large position in the gld so they're going to stay the course but they do think it could be choppy in the weeks and months to come. >> to the bond market now where we have got breaking news. rick tracking the action. hi, rick. >> hi. 35 billion brand new bouncing

baby five year notes hitting the street. the auction priced outside the wi. we give it a c plus. and it ended up at .71 yield. tiler back to you. >> thank you very much. apple stock falling far from the tree. the company's plan failed to ignite investors. soft outlook from apple from the current quarter prompted at least 17 brokerages to cut their targets. there you see, let's let that

linger here so people can get their minds around what they're looking at here. it is off more than 40% from its all-time high. back in september. now josh is going explain how wall street got so much so wrong on apple in just a moment. but first on why curiously apple is issuing new debt to do these stock buy backs and pay the dividend despite the fact that they got $145 billion. >> you have to keep in mind that a significant amount of cash is overseas this makes economics unattractive to use this cash towards re-purchases. it would require ap toll pay a high tax rate for the must issuing debt would lower apple's cost of capital.

apple will likely issue new bonds. what would this look like? take a look at its tech peers. has a roughly 2% yield. microsoft ten year bond has a yield. a bond issued by apple would be very well received by the street. it would also give fixed income and value investors a new way or a new place to get cash to work and we're seeing that transformation right now. apple changing from a growth to a value name. >> i'm sure they would get the highest of high ratings. thank you very much. >> what are they misunderstanding repeatedly? >> it's almost hard to

understand with the stock now an epic collapse. bullishness, not too long ago abounded. last february, apple hit a $500 billion market cap. out came the calls. apple would be a $1,000 stock. talking about what they called apple's unmatched asthetics. september 2012, as apple hit that record high, the mean of the 54 analysts tracking the stock was a buy with a mean price target. of course, not everybody got it wrong. once the bubble pops it goes back down to the point at which it lifted off. the question remains why did so many on the street get this one

so wrong? it proved much more successful than many thought google offered a product. and then changed the market and put apple in a poor position. also, kay says analysts have a hard time calling these turns. this is due to basic behavioral investing. >> it was almost exactly 24 hours ago when we saw how much a

role social media was playing in the markets. and we saw how it can be very evil. we saw the dow jones go from a gain of 135 points to negative 12 in under a minute and a half. >> an ap twitter feed has been hacked and it says breaking. two explosions in the white house and barack obama is injured. >> immediately people started trying to confirm whether or not it was actually true. >> any report about activity in the white house was false. >> and everybody started yelling that the bids are coming out fast. >> i think we have to look into this more and figure out how to make the systems more robust. >> indeed. now from where that investigation does stand and a look at who exactly is investigated. >> as you say, just about 24 hours later, we still don't know who was behind this attack .

>> because of the way computers around the world could be used. if you think it's one computer, it might be in control by something else somewhere nels the world. very complicated situation. >> i want to talk about the next steps in this investigation. how it happened. how easy it is. john herring is a self-proclaimed hacker. it was a first to call this a fishing attack as opposed to a different kind of attack.

but we start with form er. >> good to see you. >> is there a role here in this investigation for the sec with respect to the twitter hack. >> i think there is. as indicated in the preliminary report. they cut across all various companies public and private and they work very closely with the sec, i should say, when it comes to cyber crimes. sec does have a role but i think the fbi will be taking a lead. >> one of the things that really jumped out at me after the fact

and this brought home to me very vividly how dangerous that could be. >> i think part of the responsibility of the company once they allow the corporate executives to use their facebook pages and twitter accounts provided the shareholders to detect any apparent hacking and disseminate a correction to it. with the lance to use these outlets to disseminate .

>> first, what is phishing? >> if i wanted to know what your facebook log-in is, i would send you an e-mail to a dumby site and say please log in here and as soon as you put in that combination i would know your user name and password. if someone were to wear a uniform from your power company.

which means we shouldn't hold twitter akounltable. i was saying last night that i can't remember all of my passwords and log ins. but you better use different log ins and passwords for different accounts. the phishers will use that same one over and over again. >> they are phishing for your information. and one two three four five is not a good password. you know what? there are people like you who don't want to bother. there are awe services. >> now we're going to bring in john herring. john, before we start, you were in new york last week and you showed cnbc producer just how

fast you can hack into an account. let's take a look. >> here is a whole host of spoof e-mails. this is an e-mail from a colleague that says check out this game. i have lots of programs that it can send to me and you. >> it says lookout.com. you think it's from a co-worker. >> and this did not come from the co-worker. if you were to open this file and it's really simple to hit install. it will install the application and now you open it. it's a game or a document or a video depending on the type of exploit that is used, the device is now hacked.

>> an example of e-mailed based phishing. it is easy to pose as a legitimate user in the case of the twitter hack, it's very likely that they pose as a legitimate user. someone clicked on something and their credentials were compromised. >> are there other ways? i think the two password protocol they put in place say you're being hacked in other ways. are there key things that people need to do right now to protect themselveses? >> number one, make sure you have very strong passwords. you guys. it's a critical first step.

the second was be careful about what e-mails you are engaging with. if something seems slightly out of the ordinary, be sure to check that it actually came from that user. you might want to respond before picking on anything and try to elicit a response from the actual user to see if it was an actual e-mail. it was someone posing as a legitimate source. they charged him with hacking a government website and defacing it. that is him in the handcuffs. he is being accused of being a member of loose security. >> let's be clear that we are not dealing with small petty crime here. the potential.

>> if he is convicted he could get up to 12 years. >> in the case of the twitter impact, early reports are showing claim of the electronic army but there is no direct at bugs that we can use it is. >> is it individuals or groups? >> usually a group. in this case it was very much likely a group. >> john, thank you. very informative and enlightening. >> citi meets with shareholders today. kay lais live at the meeting in

new york. >> citigroup shareholder meeting ending in a markedly different way from last year. approving the pay package for the new ceo. last year they did not approve the pay package. also at this meeting, they re-elected the board but three additional shareholder proposals did not pass. and perhaps the most colorful part of it. he was leaving in his first ever brief public appearance. here is how he said the meeting went.

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>> used in smart phones and tablets. sue? >> here is how they are trading in today's session. boeing is up threw bucks on the day. that's almost a three and a half percent move. ford is down a fraction. phil lebeau covers both

companies. >> when you look at boeing, a lot of relief on the street from investors. the stock coming in, doing well. they beat the street the focus is on the dream liner. two things are important. one they are not changing their guidance in terms of production and two they are not taking a charge. and then delivery starting in mid may. well above. if you look over the last five years, going over the time frame. now that's the story with boeing. now let's talk about ford. stock is not moving today. it's lower. despite the fact that ford posted better than expected rodeo. they did slightly better than expected on the revenue side.

that helped offset europe. they lost. >> that was a great start, phil, thank you. let's turn now to a story that we have been trying to cover. that major flooding in illinois and chicago. you have been there. what's it like? >> a lot of people had or have water in the basement. i was in china and i got a lot of panic calls from my wife saying there's water in the basement. there's water in the basement. everybody in the suburbs -- i shouldn't say everybody but a

lot of people had water in the basement. there were six to eight inches of rain and you got a lot of areas in northern illinois that are underwater. >> ty, over to you. >> phil's wife is going over there. juniper networks taking a hit. the tech giant will join us to explain exactly why. plus, the power pitch. >> and we give you insight into the fast paced world of venture

capital. >> how much is content versus technology. >> how can you convince parents like me that it's not just another game. >> are you in or out? >> stay tuned to find out. [ male announcer ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms.

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world these are the co-founders of a tablet-based app that helps children learn. and together they bring years of 3d animation, science studies and business development experience. here is their power pitch. >> hi. i'm the co-founder and ceo. >> and i'm co-founder and chief marketing officer. >> companies have done an amazing job engaging kids and parents with their beautiful content and story telling. unfortunately, no one has been able to do the same thing with learning and curriculum. we strive to help children learn and have fun and create better learners. we do this in conjunction with stanford university researchers and scientists. >> we will engage 3 to 5-year-old children that spans

all dimensions of learning. we hope to be the pixar of early learning. >> the pixar of early learning. they can't react just yet. on our panel today we have the ceo and founder of angel list. let's huddle up first. why don't you go ahead and give me your first impressions of this app and product? >> pixar is a very expensive business to start up and run.

i would be concerned this is more of a content than technology business. are you going to. >> how much real learning is going on as opposed to entertaining. you are now in the hot seat and we're going to ask you a few questions. >> how much of this is content versus technology? and how much of the progress and learning and the effort that you make can be leveraged from application from application? >> leo's pad is a way to demonstrate the kind of learning that can happen to parent and teachers through what we're calling parents pad. folks like disney, nickalodian

and ours will want to port their content to our platform. >> what makes your product more educational and how are you going to convince parents like me that it's not gist another game? >> other big companies trying to compete with us in terms of the quality of the story telling and visuals. that's because my former company is one of a handful of studios globally that can produce feature film 3d animation work. and the fact that they are a large investor in our company

enables us to produce this content at cost. >> okay. you have heard what their answers were. let's now go to julia. >> i think it's a competitive landscape. if they can figure out how to partner with the big players and create a frenemy situation. i would be skeptically in. >> how about you? >> i do worry about margin pressure. i'm afraid the people who really control distribution, they will put you on a treadmill with all the other content producers. >> i am afraid that i am out on this one, too. the idea of being able to breakthrough what is certain to be and already is a crowded field makes the hurdles very,

very high. >> what's your reaction? obviously, we have got a lot of great investors on board. we think we have the right distribution tactics. >> thank you very much for joining us. >> what do you know? we want you to vote. vote whether you're in or you're out on kidaptive and make sure to. >> government spending cuts taking a bite out of the giants. we have the ceo joining us in just a moment.

>> tells you about all you need to know. the auction is over.

a little rally pushing yields to the low yields of the afternoon. if you look at a two-week chart, what you see is compression. really not going very far in closing yields. you want to pay attention to that very key level. >> a bipartisan plan on how to end so-called too big to fail policies. >> how you doing? ohio democrat, louisiana republican have just introduced their legislative solution. at the heart of the bill, much higher capital requirements for banks with over $500 billion in assets.

if you're a regional bank and there are a number of others. >> regulators should finish up on dod frank. light out others say regulators, not lawmakers, should be setting those standards. >> first of all, evening the playing field. >> it's really moved from what

senator sharon brown acknowledged was a joke. >> thank you. senator david vitter will be on closing bell today. >> due to cut government spending. . joining us first on cnbc is juniper networks ceo kevin johnson ch johnson. >> you do not expect the government business side to improve any time soon. how do you then counter act that? >> well, as we announced in our

earning s yesterday this is the third consecutive quarter. 60% of our business is with service providers. and that business continued to grow. that includes federal government and financial services which are two of the big verticals. we also highlighted the fact that our service provider is starting to pick up. that's a very positive thing.

>> our focus is being sure that we are doing the best that we can. federal government, financial services in whatever situation they're in. we continue to be very focused on working closely with federal government customers and help them navigate the customers that they have. that can lead to positive results for us long term. >> let me turn you to the events of yesterday afternoon where we saw that fake twitter tweet go out. twitter had been hacked. your reaction to that? and how technology can make it hard harder not only on the new york stock exchange but in people's private and personal lives. >> we live in a connected

society this becomes the need to focus on siper security. we have seen the evolution from nation state attacks to cyber crime. and i think this is just evidence that in a connected world there is much more that needs to be done in the area of cyber security. so i think it highlights the need for the industry to continue to focus on this prab. >> how hard is it to keep ahead of the technology? these people seem to be able to get into anything. >> as you point out, you have a lot of bad actors for the world. they find new ways to attack and

penetrate these networks. >> it's just one example of things that the industry needs to be focused on. >> have a look at microsoft. here is the news. up about 17% so far this year. virgin america is on the way. helping you have a lot of fun at 30,000 feet. and the stock way off its highs.

did tim cook make a $100 billion gamble to get wall street and investors off his back? should he care what wall street thinks? we will talk about that and more after this short break. oh, boy. [ groans ] ♪ ♪ [ engine revs ] ♪

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but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. >> this news just in. exxon raised its dividend. >> to retirement and quite often employers don't really mind if you retire. it's a way to get younger, cheaper workers in the door. so companies are rethinking their retirement benefits. >> employers are starting to realize there might be an issue if they have a work force that is not financially able to retire. >> because of the 2%, you don't

have as much oversight of these programs. >> only 57% of workers say they are saving for retirement. auto enrollment accounts for about 24% of retirement plans. according to the sponsor of america. >> ty, virgin america is not kidding when it says it wants you to have fun on its flights. see what this guy has up his sleeve and on your armrest.

>> coming up on street signs, a lot of questions being asked. how could this have happened and how could it have been prevented? personally has been a victim of what he and our guest says tim

cook, stop apologizing. all of those things and many, many more. back to you on power lunch. >> see you at 2:00. it's headline time. revenues and subscriber growth disappointed investors. it is up. >> sue, he is always fun. and richard branson has a way to get you excited, maybe very excited about flying. you may not believe it. we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> pay attention to the company,

churn, and make good products. >> and the happy couple is back in court today. >> it's hard to pick who you like the least in this couple. but i have to say that you have got to respect a guy who apparently lowballs his wife and sells the dodgers for $2 billions to some guys from chicago and still owns part of the parking lot. that's impressive.

>> and a new seat to seat ordering system fliers can now discretely order a snack or meal and have it delivered to another passenger on board. you like the guy in 6b, you can send him a drink or a snack. >> richard branson told me about this on monday. i was interviewing him. he calls it a dating app and it is a way that you fancy them. then he said, and this is a quote, as they are going back to the lou, maybe they can let you know that they fancy you, too. i said do you follow them to the lou? i sa he said we're not an airline that bangs on lavatory doors. >> i hate the way people dress on airplanes. they wear sweat pants and look terrible. this might make people dress up

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